Wednesday, June 3, 2009

US job loss will reach a new height

Though America is showing signs of recovery from the economic recession, gloom is still hanging over the job market. Famous computing and business firm, Automatic Data Processing, Inc. released its latest report on June 3, 2009, which says that US employers cut 5,32,000 jobs in May 2009. The company also revised its estimate of April 2009 job cuts from 4,91,000 to 5,45,000. The major cause behind such high job cuts is that employers are still taking necessary cost cutting measures. Here are some of the high lights of the report:

· Large business organizations cut 100,000 jobs.

· Medium business cut 2,23,000 jobs.

· Small business cut 2,0,9000 jobs.

· The “service-producing” sector declined by 2,65,000 positions.

· The “goods-producing” sector cut 267,000 jobs.

The US Dept of Labor is going to release its latest job report on June 5, 2009 and as per “analyst average estimate” the report will also show a figure around 5,20,000, a 9.2% increase against April 8.9%. The worst news is, despite economic recovery, American companies will reduce another one million jobs in the rest of the current year and by 2010, the jobless rate of the U.S will hit the peak of 9.5%-10%. It will be the highest since September 1983.

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